We want to pick your brains

stintond

Its no good listening to me and peaches , the only thing we can agree on is we both like gerbils (just bought my son two today , really tame pets......)
I really think you need to seek professional advice on this.
Whats this £500 limit?
The main thing that worries me about this is that you will be asked to sign some sort of agreement with the mortgage company , something everyone always advises against on this forum. The secured loan company has a second charge on your house , and as I understand ,anytime you try to sell , that charge will be produced and they will expect payment.
I got round all of this by letting the house get reposessed.
Before my house got reposessed the mortgage company wanted me to consider renting it out to tenants and the OR was fine about it as long as I kept her informed.
My advice is to let them reposess that house and go into rented. I spoke to some mortgage brokers , it is nearly impossible for a bankrupt to get a mortgage now , but this is expected to improve once the banks start lending.

tic_toc

The £500 limit is the amount of credit you can apply for/get whilst bankrupt without informing the OR.
We understand what you are saying about having to sign some sort of agreement to add the arrears to the original mortgage? The current agreement we have with the mortgage company is verbal only.

Maybe we didnt make it clear but our question re the other secured loan was "can the OR write of a secured 2nd mortgage/loan on a property that is in substantial NE?"

Does anyone know the answer to this question?

tigerfeet2006

No, if yo want to keep the hose yo have to be able to afford to pay the ortgage and any loans secrered on it.

If those payents are significantly higher than rental in yor area then the OR ay reqest yo ove into rental.

Sorry abot the typing, got probles with y keyboard

gizmo111

Even if, 5 years down the line you decided that you could no longer afford/don't want the house and there was still NE, it would be covered by your bankruptcy.

Are you sure about that? My understanding was it is only included in your BR if you say so at the time

tic_toc

Thanks Tigerfeet, thats what we thought, but there are lots of little things we have learnt on here we thought it was worth asking the question. We have included both the mortgage and secured loan on our expenditure page and it looks ok so hopefully the OR will let us stay.

peachyprice

Hi Tic-toc,

You don't need to sign anything concerning your arrears, and they are nothing to do with the £500 limit for credit. The mortgage is in place now, so whatever arrangements you come to to pay off the arrears is between you and your mortgage company, not something that the OR would get involved in at all, and not a new debt.

As for the secured loan, as long as you have the house, you have the loan, until it's paid off. This doesn't come into your BR either, and the OR will have no interest in it.

HTH

peachyprice

gizmo111 wrote: »

Are you sure about that? My understanding was it is only included in your BR if you say so at the time

Yes I am sure. 100%

There is a direct quote fron the Insolvency Service on here somewhere, I don't have time to find it right now, but I will later on.

peachyprice

stintond wrote: »

I
But , if you are telling me I could have just paid the value of the house(80k) and then the house was mine , then this is something I didnt know and I wasnt told about

I'm so sorry you were diven duff advice, but yes, you would have just kept paying the mortgage as normal, and it would have ended at the same time, for the same amount, regardless of how much the house was worth.

I hope now you can see why, if you're going BR, negative equity is your friend.

peachyprice

Sorry to have hijacked your thread tic-toc

stintond

peachyprice wrote: »

I'm so sorry you were diven duff advice, but yes, you would have just kept paying the mortgage as normal, and it would have ended at the same time, for the same amount, regardless of how much the house was worth.

I hope now you can see why, if you're going BR, negative equity is your friend.

This is why we went bankrupt , we didnt want to continue paying as normal , we were paying over 1000 a month altogether for the mortgage and secured loans ans this would have continued for the next twenty years , we had less than 10000 unsecured debts , not enough to justify br.